Balchem Ingredients expands health portfolio

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Microencapsulated ingredients specialists Balchem Corporation
announced on Tuesday that its subsidiary BCP Ingredients, Inc. has
entered into an agreement...

Microencapsulated ingredients specialists Balchem Corporation announced on Tuesday that its subsidiary BCP Ingredients, Inc. has entered into an agreement for the purchase of certain assets from DCV, Inc. and its affiliate, DuCoa L.P. Assets relate to the choline animal feed, human choline nutrient, and encapsulated products businesses of DCV, Inc. and DuCoa's manufacturing facility in Missouri. The agreement calls for a purchase price of $14.98 million, subject to certain adjustments, and the assumption by the buyer of certain obligations relatingto the acquired businesses. It also calls for possible contingent payments up to a maximum of $3 million based on select businesses of the acquiredproduct lines achieving certain gross margin levels over the three year period following the closing. The agreement is due to be closed in the second quarter 2001. In 2000 Balchem Corporation​ reported sales of $33 million, of which human, animal, and industrial encapsulated ingredients accounted for $13 million.The segments of the DCV/DuCoa business to be acquired are expected to have sales of approximately $17 million, predominantly in the North Americanmarketplace, and would broaden Balchem's portfolio in the human and animal health markets.

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